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Item 7. Management’s Discussion and Analysis

2023-03-27 compared with 2022-03-28 · 199 added, 158 removed, 282 unchanged (56% of the section changed)

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT’S DISCUSSION

AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

following discussion of the Company’s historical performance and financial condition should be read together with the consolidated

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MD&A is organized as follows:

of Operations .

Plan of Operations .

Summary of the Company’s plan of operations for the next 12 months.

Sources of Revenue .

Summary of the main sources of Company revenue during the reported periods.

of Operations .

Results of Operations .

An analysis of our financial results comparing the twelve months ended December 31, 2022, and 2021.

and Capital Resources .

Liquidity and Capital

An analysis of changes in our balance sheets and cash flows and discussion of our financial condition.

Accounting Policies and Estimates .

Accounting policies and estimates that we believe are important to understanding the assumptions

and judgments incorporated in our reported financial results and forecasts.

Issued Accounting Standards .

Critical Accounting

Policies and Estimates .

Accounting policies and estimates that we believe are important to understanding the assumptions and

judgments incorporated in our reported financial results and forecasts.

Recently Issued Accounting

A summary of recently issued accounting standards affecting the Company, if any.

of Operations

had working capital of $3,448,218 as of December 31, 2021, compared to $8,379,060 as of December 31, 2020.

The decrease in working

capital of $4,930,842 was related to write off of other receivables of $1,087,675 and inventory write-offs of $376,348, and

spend on research and development expenses of $1,367,895.

With our current cash on hand, expected revenues, and based on our current

average monthly expenses, we do not anticipate the need for additional funding in order to continue our operations at their current

levels, and to pay the costs associated with being a public company, for the next 12 months.

We may require additional funding in

the future to expand or complete acquisitions.

The sources of this capital are expected to be equity investments and notes payable.

Our plan for the next twelve months is to continue development of the information technology used in the Company subsidiaries, which

it is anticipated that current cash on hand is able to fund and continue providing a quality product with excellent customer service

while also seeking to expand our operations organically or through acquisitions as funding and opportunities arise.

As our business

continues to grow, customer feedback will be integral in making small adjustments to improve the product and overall customer

In the event we require additional funding, we plan to raise that through the sale of debt or equity, which may not be

available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders.

If we are unable to

access additional capital moving forward, it may hurt our ability to grow and to generate future revenues.

had negative working capital of $53,668 as of December 31, 2022, compared to working capital of $3,448,218 as of December 31, 2021.

decrease in working capital of $3,501,886 is related to decreases in cash and increases in liabilities.

Below are reasons

for the decrease in working capital.

Cash decreased

approximately $2.0 million for the periods ending December 31, 2022 and December 31, 2021.

The reasons for the decrease are as follows:

$275,000 cash

investment into SOSRx joint venture in February of 2022;

$225,000 settlement paid

related to the legal matter of Jain et.

in February of 2022;

$875,000 cash paid for

COVID-19 Test Kits in May of 2022,

$315,464 paid

for interest expense related to the sale of future accounts receivable in June of 2022 and again in September of 2022

current liabilities of approximately $1.2 million from the periods ending December 31, 2021 to 2022 were driven by the

following main factors:

$588,533 warrant

liability related to Private Placement Warrants;

$108,036 balance due at

December 31, 2022 on the sale of future accounts receivable which was paid in full in January 2023;

$166,667 note payable balance

due to Exchange Health related to the SOSRx joint venture, and a

$252,125 increase in accounts

payable balance at December 31, 2022 compared to the comparable period.

our current cash on hand, expected revenues, and based on our current average monthly expenses, we anticipate the need for additional

funding in order to continue our operations at their current levels, and to pay the costs associated with being a public company, for

the next 12 months.

We may require additional funding in the future to expand or complete acquisitions.

The sources of this capital are

expected to be equity investments and notes payable.

Our plan for the next twelve months is to continue development of the information

technology used in the Company subsidiaries.

As our business continues to grow, customer feedback will be integral in making small adjustments

to improve the product and overall customer experience.

We will require additional funding, we plan to raise that through the sale of

debt or equity, which may not be available on favorable terms, if at all, and may, if sold, cause significant dilution to existing stockholders.

If we are unable to access additional capital moving forward, it may hurt our ability to grow and to generate future revenues.

Coronavirus (COVID-19)

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lifted until September 2020, when the order was completely lifted.

in general and Florida specifically, has recently

seen decreases in total new COVID-19 infections (after sharp increases in infections in mid-to-late January 2022), as vaccines and boosters

are now widely available and the number of individuals who have received vaccines has increased, and the pool of persons who do not have

natural or vaccine immunity have declined;

however, it is unknown whether such decreases will continue, new strains of the virus will

cause current vaccines to be less effective or whether infection numbers will increase, and/or whether the state of Florida, or other

jurisdictions in which we operate, will issue new or expanded ‘stay-at-home’ orders, or how those orders, or others, may

affect our operations or whether such locations will see increases in infection rates, hospitalizations and deaths.

in general and Florida specifically, has recently seen decreases

in total new COVID-19 infections (after sharp increases in infections in mid-to-late January 2022), as vaccines and boosters are now

widely available and the number of individuals who have received vaccines has increased, and the pool of persons who do not have natural

or vaccine immunity has declined;

however, it is unknown whether such decreases will continue, new strains of the virus will cause current

vaccines to be less effective or whether infection numbers will increase, and/or whether the state of Florida, or other jurisdictions

in which we operate, will issue new or expanded ‘stay-at-home’ orders, or how those orders, or others, may affect our operations

or whether such locations will see increases in infection rates, hospitalizations and deaths.

date, we have been deemed an essential healthcare technology provider under applicable governmental orders based on the critical nature

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team on January 3, 2022, while our remaining employees will continue to work remotely until further notice.

we believe that we have sufficient cash on hand and will generate sufficient cash through operations and potential future equity sales,

to support our operations for the foreseeable future;

however, we will continue to evaluate our business operations based on new information

as it becomes available and will make changes that we consider necessary in light of any new developments regarding the ongoing pandemic.

We may also raise additional funding in the future through sales of debt or equity.

currently have three main revenue streams:

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the Year Ended December 31, 2022, compared to the Year Ended December 31, 2021

following selected consolidated financial data should be read in conjunction with the consolidated financial statements and the

notes to these statements included in “ Item 8.

following selected consolidated financial data should be read in conjunction with the consolidated financial statements and the notes

to these statements included in “ Item 8.

Financial Statements and Supplemental Data ” of this Report.

For all years

presented, the consolidated statements of income and consolidated balance sheet data set forth in this Form 10-K have been adjusted

for the reclassification of discontinued operations information, unless otherwise noted.

Fiscal Year Ended

December 31, 2021

December 31, 2020

For all years presented,

the consolidated statements of income and consolidated balance sheet data set forth in this Form 10-K have been adjusted for the reclassification

of discontinued operations information, unless otherwise noted.

Fiscal Year Ended December 31,

Cost of sales

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Loss on inventory investment

Impairment of intangible asset

Technology, research & development

Loss on Impairment of Goodwill

Other General and Administrative

Wages and salary

Accounting and legal

Professional fees

Other general and administrative (less stock-based compensation expense)

Warrants and options expense

Total Operating Expense

Interest Expense

Income (Loss) from Operations

Total operating expenses

Change in fair value of warrant liability

Interest, net

Gain on disposal of asset

Income from operations

$ (3,909,868 )

$ (5,315,883 )

Net loss attributable to TRxADE Health, Inc.

Net loss attributable to non-controlling interests

revenues during the years ended December 31, 2022, and 2021 were mainly from the Trxade Inc.

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Integra Pharma Solutions.

Revenues decreased by $7,233,087 for the 2021 year, compared to the prior year’s period.

In Trxade, Inc.,

revenue decreased by $622,731 or 11% to $4,924,015, compared to $5,546,746, for the years ended December 31, 2021, and 2020, which is

attributable to larger amounts of personal protective equipment (PPE) items being sold on the platform in 2020 than in 2021 as

a result of the COVID-19 Pandemic and more brand pharmaceutical product being sold through the platform at a lower transaction

fee than generic pharmaceutical products with a higher transaction fee.

Integra Pharma Solutions revenue decreased by $6,626,506,

which is attributable to non-recurring sales of personal protective equipment (PPE) items that were needed in large quantities in 2020

as a result of the COVID-19 Pandemic, and which line of products the Company did not continue in during 2021.

Revenues increased by $1,558,832 for the 2022 year, compared to the prior year’s revenue of $9,889,433.

Trxade, Inc., revenue increased by $511,799 or 10% to $5,435,814, compared to $4,924,015, for the years ended December 31, 2022, and

2021, which is attributable to a 21% increase in sales volume on the platform in 2022.

Integra Pharma Solutions’ revenue increased

by $1,503,506, or 46%, which is attributable to increased sales volume and pricing changes.

The Trxade, Inc.

is a secondary marketplace for pharmaceuticals and medical supplies with consistent growth year over year.

We see a trend that whenever

there is a supply shortage on the primary market, the platform being a secondary market, will see increase in traffic or sales.

extraordinary events such as COVID-19 will results in larger increases in addition to the normal growth year over year.

platform is a secondary

marketplace for pharmaceuticals and medical supplies with consistent growth year over year.

We see a trend that whenever there is a supply

shortage on the primary market, the platform being a secondary market, will see an increase in traffic or sales.

of Sales was $5,997,049 and gross profit was $5,451,216, for the year ended December 31, 2022, compared to 5,143,468 and $4,745,965,

for the year ended December 31, 2021.

As sales for PPE decreased in 2021, the cost of sales decreased.

The increase in cost of sales is attributed to the increased sales volume of Integra Pharma Solutions,

Trxade, Inc does not have cost of sales as it is a software platform.

However, our Integra Pharma Solutions is a wholesale business with

variable cost of sales that will increase as sales volume increases.

profit as a percentage of sales was 47.6% for the year ended December 31, 2022, compared to 48% for the year ended December 31, 2021.

reason for the increase in gross profit as a percentage of sales was a result of a larger percentage of our revenue being from the Trxade

Platform, which carries no cost of sales in 2021, while in 2020, a larger percentage of our revenue was related to orders of PPE related

product, which include a relatively high cost of sales.

research and development expenditures increased to $1,367,895 for 2021, compared to $662,726 for 2020, as the Company continued to develop

apps for customers.

and administrative expenses (less stock-based compensation expense, technology, research and development, loss on inventory investments)

increased for the year ended December 31, 2021, to $7,053,861, compared to $4,962,237 for the comparable period in 2020.

was mainly due to increases in employee compensation in order to complete in the current challenging labor market, legal expenses

related to historically disclosed lawsuits, and research and development expenses as a result of expanding and developing the newer business

stock-based compensation expense decreased by 79% for the year ended December 31, 2021, compared to the prior year’s period due

to the Company not granting warrants and bonus shares to executives in 2021, as described in greater detail under “ Item 8.

Financial Statements and Supplemental Data ”– “ Note 4 – Stockholders’ Equity ”.

had $1,226,426 of loss on inventory investment for the year ended December 31, 2021, in connection with our write-down of our the Bonum

Health Hubs after we determined that the Hubs could not be assembled and placed into service to generate revenue without requiring further

investments and our write-down of other receivables related to inventory deposits we made to suppliers that were not refunded to us when

the suppliers could not fulfill our purchase order as described in greater detail under NOTE - 8 OTHER RECEIVABLES .

had $725,973 of loss on impairment of goodwill for the year ended December 31, 2020, in connection with the acquisition of

Community Specialty Pharmacy, LLC.

In 2020, we performed a qualitative and quantitative assessment to determine the impairment of goodwill

and found that due to the decrease in patient prescription post acquisition and COVID-19 uncertainties that the company may have likely

overpaid for the acquisition and impaired goodwill to zero.

had interest expense of $23,590 for the year ended December 31, 2021, compared to interest expense of $29,389 for the year ended December

31, 2020, which decreased due to decreases in the amount of outstanding debt the Company had to $0 from $225,000 at the years ended December

31, 2021, and 2020, respectively.

loss increased by $2,779,832, to a net loss of $5,315,883 for the year ended December 31, 2021, compared to net loss of $2,536,051

for the year ended December 31, 2020, mainly due to the increase in general and administrative expenses associated with research and

development cost for our new business units and write-off of other receivables related to inventory deposits as explained above

(see NOTE - 8 OTHER RECEIVABLES ).

The reason for the decrease in gross profit as a percentage of sales was a result of increased sales volume of Integra Pharma Solutions

and the cost of sales associated with this line of business compared to our Trxade, Inc platform revenue that does not have cost of sales.

research and development expenditures decreased to $1,160,856 for 2022, compared to $1,367,895 for 2021, as the Company continued to develop

apps for customers and make improvements to our platform technology.

fees decreased for Fiscal 2022 by $575,275 to $519,642 compared to $1,094,917 for Fiscal 2021.

in professional fees for the year ended December 31, 2022 related to lower board fee expenses, research and development consulting, and

contractor expense.

and administrative expenses (less stock-based compensation expense) decreased for the year ended December 31, 2022, to $1,422,149 compared

to $1,904,427 for the comparable period in 2021.

The decrease is largely driven by approximately $247,000 of bad debt expense related

to other receivables from GSG.

In June 2022, the Company received a $100,000 payment from GSG and recorded a credit to Bad Debt Expense,

additional monthly payments made by GSG were also recorded as a credit to the Bad Debt Expense less applicable interest and recovered

In the three-month period ended September 30,2021 there was $630,000 of bad debt expense recorded related to the same GSG

These events decreased general and administrative expenses in 2022 and significantly increased these expenses in 2021.

stock-based compensation expense decreased by 9.5% or $35,152 to $333,284 from $368,436 for the year ended December 31, 2022, compared

to the prior year’s period.

The decrease was due to no stock options being issued in 2022.

had $875,520 of loss on inventory investment for the year ended December 31, 2022, in connection with COVID-19 test kits that were purchased

and could not be resold due to issues with the FDA.

We had a loss on inventory investment of $1,225,141 in 2021 in connection with inventory

deposits made to vendors that were not refunded to us when the suppliers could not fulfill our purchase orders, as described in greater

detail under NOTE - 8 OTHER RECEIVABLES .

At June 30, 2021 the Company recorded a loss on inventory investments in the amount of $1,081,250

for Integra Pharma Solutions and $143,891 for Bonum Health related to the Bonum Health Hubs after we determined that the Hubs could be

assembled and placed into service due to the COVID-19 pandemic.

had $792,000 of loss on impairment of intangible assets for the year ended December 31, 2022, in connection with the SOSRx, LLC joint

venture agreement.

In 2022, we performed a qualitative and quantitative assessment to determine the impairment of the intangible asset

contributed in the JV agreement for SOSRx and found that due to the lack of revenue generated from these assets that they were determined

to be impaired and that the company needed to write the asset down to zero.

had interest expense, net, of $315,217 for the year ended December 31, 2022, compared to interest expense of $23,590 for the year ended

December 31, 2021, increased interest expense is driven by two funding agreements where the Company agreed to sell future receivables.

As part of the agreement the Company paid weekly interest.

in warrant liability due to fair value remeasurement at December 31, 2022 is recorded as a positive adjustment in the amount of $825,544.

loss decreased by $1,406,015, to a net loss of $3,909,868 for the year ended December 31, 2022, compared to net loss of $5,315,883 for

the year ended December 31, 2021, this variance is driven by several key factors, as listed below.

revenue of approximately $1.6 million,

Increased gross profit

of approximately $0.7 million,

Decreased year over year

loses on inventory investments of approximately $0.4 million,

Decreased general and administrative

expenses of approximately $0.5 million,

Decreased professional

fees of approximately $0.6 million;

A positive adjustment related

to the remeasurement of the fair value of warrant liability – approximately $0.8 million,

and Capital Resources

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of cash generated from operations, remaining cash balances, borrowings, and any additional funds raised through sales of debt and/or

and cash equivalents, current assets , current liabilities, short term debt and working capital at the end of each period were

current assets , current liabilities, short term debt and working capital at the end of each period were as follows:

December 31, 2022

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Short term debt*

Working Capital

Working deficit

Short term notes payable – related parties.

principal sources of liquidity during the years ended December 31, 2021, and 2020 have been cash provided by operations (internal source),

and during 2020, equity capital and borrowings under various debt arrangements (external source).

Our principal uses of cash have been

for operating expenses and research and development of our newer business units.

We anticipate these uses will continue to be our principal

uses of cash in the future in addition to any necessary business acquisitions.

We currently, do not have any material unused sources

of liquid assets.

principal sources of liquidity during Fiscal 2022 and Fiscal 2021 have been cash provided by operations (internal source).

During Fiscal

2022, equity capital and borrowings under various debt arrangements (external source) and a stock placement deal of 920,000

Our principal uses of cash have been for operating expenses and research and development of our newer business units.

We anticipate

these uses will continue to be our principal uses of cash in the future in addition to any necessary business acquisitions.

do not have any material unused sources of liquid assets.

and other current assets decreased by $1,988,945 and $292,176 respectively.

The decrease in cash and cash equivalents was primarily

due to amounts spent on research and development expenses related to our newer business units.

The decrease in our current assets was

primarily due to the write off other receivables related to inventory deposits to suppliers that we did not get refunded when the suppliers

could not fulfill our purchase order (see NOTE - 8 OTHER RECEIVABLES ).

liabilities increased by $83,788.

The increase is primarily due to an increase in operating accounts payable not being paid until January

4, 2022, after the account payable balance was recorded for the year ended December 31, 2021.

The decrease in cash was primarily due to amounts

spent on research and development expenses related to our newer business units.

The decrease in our current assets was primarily due

to the write-off of $875,000 related to inventory deposits to suppliers that we did not get refunded when the inventory could not be

liabilities increased by $1,220,765 from $926,026 to $2,146,791 for the year ended December 31, 2022.

The increase is primarily due

to an increase in notes payable that was related to the joint venture with SOSRx, two accounts receivable advances with Agile that

will be repaid by the end of January 2023, and $588,533 warrant liability related to Private Placement Warrants.

Outlook cash explanation

primary objectives for 2022 are to continue the development of the Trxade Platform, DelivMeds and Bonum Health and work to increase our

client base and operational revenue.

As a result of our cash generated through operations and cash on hand, we believe we have sufficient

cash to support our operations for the foreseeable future.

primary objectives for 2023 are to continue the development of the Trxade Platform, Integra Pharma Solutions, and Bonum Health and work

to increase our client base and operational revenue.

We have limited financial resources and we will need to raise additional capital

or secure debt funding to support ongoing operations.

There can be no assurance that our operations will generate significant positive

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General and administrative (1)

wages and payroll, legal and accounting, marketing, rent and technology development.

Includes wages and payroll,

legal and accounting, marketing, rent and technology development.

have historically funded our operations primarily through debt and equity capital raises and operational revenue.

In 2022, common stock

was sold for net proceeds of $16,822 in connection with the exercise of warrants and stock options previously awarded.

2020, common stock was sold for net proceeds of $5,262,068.

was sold for net proceeds of approximately $1.3 million in connection with the exercise of warrants and the stock placement of 920,000

shares with a purchase price of $1.15 per share.

may require additional funding in the future to expand or complete acquisitions.

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$ (5,315,883 )

$ (2,716,347 )

Net Cash Provided by (used in):

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$ (2,797,000 )

by operations for the fiscal year ended December 31, 2021, was $2,566,226.

This compared to $2,214,786 of cash used by operating activities

for the fiscal year ended December 31, 2020.

The increase was primarily due to spending for research & development related to the

development MedCheks Health Passport Application, the development of DelivMeds Application, legal expenses related to outstanding lawsuits,

repayment of related party loan, and employee payroll.

For additional information refer to Notes to Consolidated Financial Statements.

used by operations for the fiscal year ended December 31, 2022, was $1,525,929.

This compared to $2,566,226 of cash used by operating

activities for the fiscal year ended December 31, 2021.

The decrease was due to various things that include the recovery of bad debt

related to the GSG settlement of approximately $0.25 million and a $1.4 million decrease in net losses for December 31, 2022 compared

used by investing activities for the fiscal year ended December 31, 2022, was $427,845.

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activities for the fiscal year ended 2021.

In 2021, the cash was used to purchase a single delivery vehicle for Community Specialty Pharmacy,

In 2020, the cash was used to purchase a single forklift to the Integra Pharmacy Solution, LLC warehouse.

used by financing activities for the fiscal year ended December 31, 2021, was $208,178, which $225,000 was used to repay a related party

loan and $16,822 was received from the exercise of warrants and options.

This compared to $5,994,424 of proceeds and $5,300,175 of cash

to the Company after expenses, and the exercise of warrants and options which generated cash of $38,107 for the fiscal year ended December

In 2022, the cash was used for an investment in capitalized software for Delivmeds.

the cash was used to purchase a single delivery vehicle for Community Specialty Pharmacy, LLC.

used by financing activities for the fiscal year ended December 31, 2022, was $35,171, which $716,964 was used to repay two accounts

receivable advances and $1,545,855 was received from the exercise of warrants and a stock placement.

This compared to $208,178

of cash used by operating activities for the fiscal year ended December 31, 2021.

In 2021, the cash was used to repay a short-term related

party promissory note of $225,000 offset by exercise of stock warrants and options of $16,822.

Contractual and Other Obligations & Commitments

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We consider an accounting estimate to be critical if the estimate requires us to make assumptions about matters that were uncertain

at the time the accounting estimate was made and if different estimates that we reasonable could have used in the current period, or

at the time the accounting estimate was made and if different estimates that we reasonably could have used in the current period, or

changes in the accounting estimate that are reasonably likely to occur from period to period, could have a material impact on our financial

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are appropriate and consistent in the context of historical methodologies employed, as well as assessment of trends currently available.

for Doubtful Accounts

determining whether an inventory valuation allowance is required, we consider various factors including estimated quantities of slow-moving

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We write down inventories which are considered excess and obsolete

as a results of these revies.

as a result of these reviews.

These factors could make our estimate of inventory valuation differ from actual results.

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actively traded in public markets.

Under the income approach, we use a discounted cash flow (“DCF”) model in which cash flows

anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to their present value using

an appropriate rate that is commensurate with the risk inherent within the reporting unit.

In addition, we compare the aggregate of the

reporting units’ fair values to our market capitalization as further corroboration of the fair values.

Under the income approach, we use a discounted cash flow (“ DCF ”) model in which

cash flows anticipated over several periods, plus a terminal value at the end of that time horizon, are discounted to their present value

using an appropriate rate that is commensurate with the risk inherent within the reporting unit.

In addition, we compare the aggregate

of the reporting units’ fair values to our market capitalization as further corroboration of the fair values.

of fair value result from a complex series of judgements about future events and uncertainties and rely heavily on estimates and assumptions

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are based on information available as of the impairment testing date and are based on expectations and assumptions that have been deemed

reasonably by management.

reasonable by management.

Any material changes in key assumptions, including failure to meet business plans, negative changes in government

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When the decline

in value is deemed to be other than temporary, an impairment is recognized to the extent that the fair value is less than the

carrying value of the investment.

We consider various factors in determining whether a loss in value of investment is other than temporary

the length of time and the extent to which the fair value has been below the cost, the financial condition of the investees,

and our intent and ability to retain the investment for a period of time sufficient to allow for recovery of value.

Management makes

certain judgments and estimates in its assessment including but not limited to:

identifying if circumstances indicate a decline in value

is other than temporary, expectations about the business operations of investees, as well as industry, financial, and market factors.

Any significant changes in assumptions or judgments in assessing impairments could result in an impairment charge.

in value is deemed to be other than temporary, an impairment is recognized to the extent that the fair value is less than the carrying

value of the investment.

We consider various factors in determining whether a loss in value of investment is other than temporary including:

the length of time and the extent to which the fair value has been below the cost, the financial condition of the investees, and our

intent and ability to retain the investment for a period of time sufficient to allow for recovery of value.

Management makes certain

judgments and estimates in its assessment including but not limited to:

identifying if circumstances indicate a decline in value is other

than temporary, expectations about the business operations of investees, as well as industry, financial, and market factors.

Any significant

changes in assumptions or judgments in assessing impairments could result in an impairment charge.

income tax expenses, and deferred tax assets and liabilities reflect management’s best assessment of estimated current and future

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We are subject to income taxes in the U.S.

Significant judgments and estimates are required in determining the

consolidated income tax provision and in evaluating income tax uncertainties.

We review our tax positions at the end of each quarter

and adjust the balances as new information becomes available.

Significant judgments and estimates are required in determining the consolidated

income tax provision and in evaluating income tax uncertainties.

We review our tax positions at the end of each quarter and adjust the

balances as new information becomes available.

income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense.

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Financial Statements and Supplemental Data ”.

AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET

to Item 305(e) of Regulation S-K (§ 229.305(e)), the Company is not required to provide the information required by this Item as

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis